There is an article that has been posted by The Wall Street Journal called “Chinese Retailer JD.com Turning Its Logistics Network Into Broader Delivery Service” discussing the bold new move being taken by the China-based company in the realm of package delivery. While JD.com has been a market leader in the distribution market of its goods to its consumers for quite some time, they have now taken the initiative to open up their shipping network to their consumers and local businesses. This means that JD.com will not only deliver range of product that customers buy from their website, but they will also deliver packages in general for their consumers. It is a bold move but not one that is unheard of in the region.
This new network will also be a direct competition for shipping companies such as ZTO express and SF express. These bigger delivery services resemble those of UPS and FedEx in the United States. JD.com sees this move is natural because their network is already capable of reaching more than 99% of the population and it can deliver most of the orders that it receives within less than a day. Their an expansive network includes more than 500 different warehouses and over 7000 delivery stations. There are also somewhere around 250,000 transportation vehicles that occupy its delivery fleet. When it comes to parcel delivery, JD.com is completely prepared to offer this service to its customers.
For the creators of JD.com. This move seems to be a logical one. They believe that there are few competitors that possessed their resources. The expansion into package delivery is also going to be good for them. Because they possess such an expansive network, changing to package delivery would help support that network a little better. It seems that JD.com is intent on taking the plunge and jumping headfirst into the package delivery market. They will be major competitors in the future. In fact, the CEO has talked extensively about the fact that they would love to have a global presence one day. The future will tell that story as they continue their expansion into the Chinese economy.